Oracle Financial Services
Oracle Financial Services is a subsidiary of Oracle Financial Inc, US, one of the world’s largest software services companies.
The company provides software related to banking and insurance and has performed well in recent quarters. In fact, the company had declared a dividend of Rs 200 per share, bringing the yield of the dividend itself to almost 6% (5.87% to be precise).
In its recent results, the company highlighted the fact that orders for the nine months ending December 2021 were up 21% from the previous nine months. The stock trades at 14 or 15 times one-year forward earnings. Midsize IT companies are trading at a p/e as high as 25x. Oracle Financial Services stock is trading at Rs 3,500 and we believe a 30% return on the stock is highly possible from current levels. The stock had also hit a 52-week high of Rs 5,000 plus.
It is a multinational company, like Oracle Financial, with a dividend yield of 5.1%. How often do you see a company with a strong brand available at a 12x price to earnings ratio and a dividend yield of over 5%. Needless to point out that the company is the leading player in the lubricants segment and has strong brand equity.
The shares fell from levels of Rs 154 to current levels of Rs 107, making it an attractive stock to buy at current levels. As the economy recovers, the company should benefit from this, as the lubricants market would be one of the main beneficiaries.
This is another stock which is a top notch stock with brands like Vivel, Fiama, Ashirvaad, Bingo, Sunfeast etc. The company is a cigarette for the FMCG player with a long experience. Shares of the company at the current market price are available with a dividend yield of over 5%, which is very attractive. We recommend investors to buy the same. ITC saw its shares plunge from levels of Rs 235 just a few weeks ago to current levels of Rs 231, which now offers a good entry point.
Although we recommended buying the stocks above, we believe there will be immense volatility in the coming days. Foreign portfolio investors have been in sell mode over the past few trading sessions and that is unlikely to change. We also believe that with the US Fed, interest rates are likely to rise, and things could be very volatile in the coming days. So buying in small quantities would be the best strategy moving forward.